TaxTMI 
TaxTMI 
2012 (11) TMI 1336
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....IT(A), Amritsar, are both against the facts of the case and untenable in law. 2. That the Ld. CIT(A) did not appreciate that the notice u/s 148 of the Income-tax Act, 1961 issued by the AO is illegal, invalid and void ab-initio and the same is liable to be cancelled. 3. That the Ld. CIT(A) did not appreciate that the conditions laid down u/s 148 of the I.T. Act, were not fulfilled. As such the order is bad in law and the same deserves to be cancelled. 4. That the Ld. CIT(A) did not appreciate that the objections filed before the AO against the issue of notice u/s 148 of the Act, dated 12.12.2008, were correct and the appeal should have been accepted. A copy of the letter dated 12.12.2008 is made part & parcel of t....
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....ging the interest. As such, the interest charged under these sections of the Income Tax Act, 1961 may be deleted. Alternatively, the interest charged under these sections of the I.T.Act, 1961, is very high & excessive. 9. Any other ground of appeal that may be urged at the time of hearing of the appeal." 2. The Ld. counsel for the assessee, Mr. P.N.Arora Advocate pointed out at pages 1 & 2 of the assessment order, which contained reasons recorded, which for the sake of clarity are reproduced hereunder: "In this case return of income for the A.Y. 2001-02 has been filed on 28.11.2001 declaring an income of Rs.6,61,379/-. There is an information in my possession, as furnished by the investigation wi....
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....osed funds of the assessee. For obtaining the said accommodation, the assessee had to pay commission @ 3% which comes to the tune of Rs.15,030/-. The information as received the DIT (Inv)-1, Delhi, has been considered by me & after through examination of information & the record of the assessee. I have reasons to believe that income of Rs.5,16,030/- chargeable to tax has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly this material fact necessary for his assessment and hence action u/s 147 of the I.T. Act, is warranted to tax the above income and any other income chargeable to tax which has escaped assessment and which comes to notice subsequently in the course of the proceedings ....
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....ssessee. The assessee raised objections on 12.12.2008 against reopening of the assessment citing that there is nonapplication of mind and non existence of material. It was submitted that it is only subsequently during the assessment proceedings, it came to the knowledge of the AO that the assessee had received Rs. 2 lacs. The AO did not accept the explanation of the assessee and even did not accept the counter-signed gift deed of Rajan Jassal treating the same as selfserving document and relying upon the decision of Hon'ble Punjab & Haryana High Court, in the case of Jaspal Singh vs. CIT 290 ITR 306 (P&H) observed that the assessee has not discharged his burden cast upon him to prove the genuineness of the gift received and accordingly an a....
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....t been proved wrong. Therefore, reopening of the assessment is without any material on record and it can not be said that the AO had any reason to believe to record that assessee's income chargeable to tax had escaped assessment. Mr. P.N. Arora, relied upon the decisions of various courts of law in this regard. 6.1. He further argued that assessee having received gift through banking channel for which the assessee had submitted counter-signed gift deed from the donor, which is a matter of record. The said gift deed has not been disproved by the AO in view of the decision of Hon'ble Supreme Court in the case of Mehta Parikh & Co. vs. CIT reported in 30 ITR 181 (SC). The Ld. counsel for the assessee, therefore, argued that the notice issue....